Ghcl Limited · NSE:GHCL
Ghcl — Q4 FY2022 Earnings Presentation
46 slides from Ghcl's earnings presentation, Apr 30, 2022
Slide 1: GHCL Limited – Investors' Presentation Intimation to Exchanges
GHCL Limited April 30, 2022 ·~hrrol, Cf1 (. ¢0 I q a=f 31 Ji I ct f4 I ~ {1J=q(1 ~ol9~ National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, "Exchange Plaza" 151 Floor, New Trading Ring , Rotunda Building , Bandra - Kurla Complex, P.J. Towers, Bandra (E) , Mumbai -
Slide 2: GHCL Limited Q4 FY22 Investor Update
GHCL LIMITED Q4 FY22 Investor Update April 2022 DRIVING EXCELLENCE
Slide 3: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 4: Table of Contents
Table of Contents Quarterly & Annual Update 4 Company Overview 20 Inorganic Chemicals Segment 28 Textiles Segment (Spinning) 37 3
Slide 5: Quarterly & Annual Update
Quarterly & Annual Update GHCL
Slide 6: Management Commentary
Management Commentary Commenting on the Q4 & FY22 performance, Mr. R. S. Jalan, MD said: “We have ended the year on a strong note, delivering a topline growth of 77% and healthy EBITDA margins of 32.1% during the year. Net profit for the year has recorded growth of 126%. Key strategic milestone of s
Slide 7: Performance Highlights – Q4 FY22
Performance Highlights – Q4 FY22 Q4 FY 22 Vs Q4 FY 21 Excluding Discontinued Operations Including Discontinued Operations Revenue ` 1,279 Cr. 77% ` 1,507 Cr. 84% EBITDA ` 411 Cr. 113% ` 434 Cr. 122% PBT ` 339 Cr. 128% ` 361 Cr. 151% PAT ` 244 Cr. 126% ` 260 Cr. 149% Cash Profit ` 298 Cr. 119% ` 313
Slide 8: Performance Highlights – Q4 FY22 vs Q3 FY22
Performance Highlights – Q4 FY22 Q4 FY 22 Vs Q3 FY 22 Excluding Discontinued Operations Including Discontinued Operations Revenue ` 1,279 Cr. 27% ` 1,507 Cr. 31% EBITDA ` 411 Cr. 64% ` 434 Cr. 60% PBT ` 339 Cr. 64% ` 361 Cr. 64% PAT ` 244 Cr. 60% ` 260 Cr. 59% Cash Profit ` 298 Cr. 63% ` 313 Cr. 58%
Slide 9: Performance Highlights – FY22
Performance Highlights – FY22 FY 22 Vs FY 22 Excluding Discontinued Operations Including Discontinued Operations Revenue ` 3,789 Cr. 52% ` 4,499 Cr. 58% EBITDA ` 992 Cr. 64% ` 1,094 Cr. 69% PBT ` 787 Cr. 88% ` 868 Cr. 106% PAT ` 574 Cr. 87% ` 634 Cr. 105% Cash Profit ` 748 Cr. 79% ` 821 Cr. 83% 8
Slide 10: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q FY22 FY21 Y-o-Y Revenue from continued operations 1,279 723 77% 1,006 27% 3,789 2,498 52% Operating Expenses of continued operations 868 530 64% 755 15% 2,797 1,894 48% EBITDA from continued operations 411 193 113
Slide 11: Balance Sheet
Balance Sheet Reported Including DC* ( Rs. In Crore ) DC* Particular March 2021 March 2022 March 2022 March 2022 Non Current Assets (A) 2,888 2,810 3,083 276 Current Assets (B) 1,101 1,605 1,904 300 Assets Held for sale (C) 2 576 4 Total Assets (A)+ (B)+ (C) 3,991 4,991 4,991 576 Net Worth (D) 2,502
Slide 12: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Efficient Capital Allocation Borrowing Working Capital ❖ Creating and sustaining Social And Relationship Rs. 17 crore Rs. 559 crore an enabling external environment for the business to flourish Financial ❖ Rs. Funds are being invested Growth Capex in variou
Slide 13: Q4 FY22 Segment Highlights – Inorganic Chemicals
Q4 FY22 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Performance Highlights ❖ Revenues expanded by 89% Y-o-Y and 31 % Q-o-Q Particulars Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q supported by healthy price appreciations and the volume growth. Favorable demand supply dynamics Revenue 1,001 531 89
Slide 14: Q4 FY22 Segment Highlights – Textiles (Spinning)
Q4 FY22 Segment Highlights – Textiles (Spinning) (Rs. In Crore) Performance Highlights Particulars Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q ❖ Spinning business demonstrated strong growth trajectory driven by healthy demand landscape with Revenue 278 192 45% 241 15% better pricing trends. EBITDA 73 51 43%
Slide 15: Completed divestment of HT Business to Indo Count Industries
Completed divestment of HT Business to Indo Count Industries Divestment ❖ Successfully completed divestment of Home Textile business to lndo Count Industries Limited of Non- effective 2nd April 2022, after obtaining all relevant regulatory and shareholders' approvals Strategic Business ❖ Further, Gr
Slide 16: Demerger of the Spinning business of GHCL
Demerger of the Spinning business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Spinning business of GHCL will be demerged into a Focused GHCL Textiles Limited growth Shareholders of GHCL will be allotted shares in GHCL textiles Limited in the swap ratio of 1:1, o
Slide 17: Strong Institutional & HNI Holding – ~41.2%
Strong Institutional & HNI Holding – ~41.2% Non-Institutional Holding (Incl. Corporates) 39.76% Institutional & HNI Holding – ~41.2% Promoters & Promoters Group 19.07% 16 Note: Shareholding as of March 31, 2022; HNI - Individuals holding share capital in excess of Rs. 2 lakhs.
Slide 18: Focus on driving responsible future growth – Inorganic Chemical
Focus on driving responsible future growth – Inorganic Chemical Debottlenecking of existing soda ash facility by 50k MT completed. Doubling RBC Capacity from 60k to 120K MT. Focus on Greenfield Soda Ash project of 5L MT. Augmenting our backward integration of raw material for enhanced contro
Slide 19: Focus on driving responsible future growth – Textile
Focus on driving responsible future growth – Textile Expansion of Spinning facility: 40k spindles to be completed by Q2 FY23. Another 40k spindles to be completed in FY24. Focus on green energy: Solar – 20 MW implemented and additional 10 MW under implementation. Inorganic Textile Total
Slide 20: Awards & Recognitions
Awards & Recognitions 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, HR Excellence Award GHCL received 12th CII National HR Excellence Award for strong Mahatma Award for commitment 13th CEO GHCL’s Rank History CSR Excellence Conference Referred as Gre
Slide 21: Company Overview
Company Overview GHCL
Slide 22: GHCL – An Introduction
GHCL – An Introduction Best-in-class 1 ❖ Focused management Targeting ❖ Operations management approach ❖ To grow profits at a CAGR 15% on a long-term horizon ❖ CAPEX planning and execution ❖ Strategy led by professional ❖ To inculcate value systems that defines our culture ❖ Financial management man
Slide 23: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda experience ash player in India Professionally managed Listed on 2 workforce premier stock exchanges of India Focus to emerge as a sustainable business Business Philosophy organization of Inclusive growth of all stakeholders 22
Slide 24: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 25: Our Objective
Our Objective “Achieve the CAGR growth of 15% in bottom-line with creating value for all our 5 stakeholders” Responsible Growth Brand Image ESG Learning Organization Corporate Competency Organic Growth - CAPEX HSE – Zero Harm Governance Building Non CAPEX led Growth CSR - Responsible Talent Manageme
Slide 26: Sustainability Vision 2023
Sustainability Vision 2023 GHCL’s business goals include Zero harm sustainability. To embed ❖ Zero reportable injuries ❖ Zero environmental incidences sustainability in business and operations, concentrating Responsible steward attention on material concerns ❖ 20% specific freshwater consumption red
Slide 27: Core Values at forefront
Core Values at forefront ❖ GHCL is a unique workplace which is dotted with its Core Values, defining its culture. ❖ Every employee in the Company is expected to imbibe its Core Values and interact within the business Integrated ecosystem with all its Respect Trust Ownership teamwork stakeholders acc
Slide 28: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independent Director) (Ind
Slide 29: Inorganic Chemicals
Inorganic Chemicals 28
Slide 30: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 31: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry Soda Ash Market Outlook GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT Globally, Consumption of Soda Ash has been growing across all regions upon demand revival from industry, Supply remains tight, as Russia-Ukraine conflict disrupted coal and NG prices and c
Slide 32: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Demand Share Domestic Demand & Growth Trend (CAGR Growth of ~5% during period upto FY 22) 25% 36 40 40 40 36 41 23 25 25 26 28 28 31 31 33 34 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 60% 15% Domestic Demand (MT) Gr
Slide 33: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 34: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 33
Slide 35: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share 13% Doubled capacity 21% from 30,000 to 60,000 MT in 66% December 2017 Import GHCL Other Domestic Players Generally Domestic Demand Concentration Specialization and named as baking experience in soda, bread West 16% manufacturing of soda
Slide 36: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 35
Slide 37: Marquee Clients
Marquee Clients & Y ac roost = BOROSIL FENA Hinduaten Unilever Limited LIMITED : @FENA PE, qratanau, SoLDs=PLus \(G Piramal 2 a i Si Ss : Glass : HINDUSTAN ZINC
Slide 38: Textiles Segment (Spinning)
Textiles Segment (Spinning)
Slide 39: Spinning business: Performance synopsis
Spinning business: Performance synopsis ❖ Demonstrated sustained gains over long term; on track to deliver next leg of growth ❖ High-margin value-added yarn accounts for 60% of total revenue ❖ Elevated capacity utlilisation levels at ~99% Particulars FY22 FY21 5 Years’ Avg. 10 Years’ Avg. Revenue 92
Slide 40: Spinning facility at a glance
Spinning facility at a glance ❖ Journey Started with acquisition of sick spinning unit in 2002, Turnaround to one of the most reputed mill in southern India. ❖ State of art manufacturing infrastructure includes machines from LMW India, Rieter Switzerland, Schlafhorst Germany, Savio Italy, Murata Jap
Slide 41: Key product offerings in Spinning
Key product offerings in Spinning Preferred supplier to premium customers both at domestic and international level with varied portfolio offerings Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn from Indian, US and Australian Mix 25s to 60s Knitting 100% cotton combed compact yarn fr
Slide 42: Marquee Clients
Marquee Clients & qp j | \ MD raymond ACVIND AAT TTT DMM BRLAANY WELSPUN INDO COUNT SEELEY Vardhman Complete Comfort MANTAFIL Bggazgutagl |\4(SCRBIFTL. & posiri... PBs
Slide 43: About Us
About Us GHCL Limited was incorporated on 14th October, 1983. The Company has established itself as a well- diversified group with an ascertained footprint in chemicals, textiles and consumer products segments. In chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that
Slide 44: Thank You
Thank You 43
Slide 45: Annexure 1 - Q4 FY22 Segment Highlights – Textiles Including HT
Annexure 1 - Q4 FY22 Segment Highlights – Textiles Including HT (Rs. In Crore) Particulars Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q Revenue 507 290 74% 385 32% EBITDA 96 53 80% 88 10% EBITDA % 19% 18% 60 bps 22.9% (380) bps Textile – Quarterly Trend Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) 23.5% 23.0% 2
Slide 46: Annexure 2 - Profit & Loss Statement – Including HT
Annexure 2 - Profit & Loss Statement – Including HT (Rs. In Crore) Particulars Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q FY22 FY21 Y-o-Y Revenue 1,507 821 84% 1,150 31% 4,499 2,850 58% Operating Expenses 1,074 626 71% 880 22% 3,405 2,204 54% EBITDA 434 195 122% 270 60% 1,094 646 69% EBITDA Margin 28.8% 23